Situation in the real estate market... madness

I'd gladly say everything was better in the past, although I don't know if that's true. But the fact is, in my parents' time, only one person had to work and the house was bigger, well-equipped, and we went on vacation. There were also new cars in the driveway. None of this was a problem, and that despite very high loan interest rates.

Fact 2: today, despite almost zero interest rates, this is no longer possible. The main reason is the real estate market bubble and the low increase in salaries. But the welfare state also costs money and needs to be paid for, with those in need no longer only Germans as before but now the whole world.

Inefficient planning has turned the energy transition and infrastructure projects into a disaster.

But the German "Michel" engages in discussions about paper cups and gender equality, watches Queen of Drags on the couch, and comfortably drinks his glass of wine or bottle of beer.

Life is beautiful, even without money.

First-class regulars' table talk, that's what I love.

Your view on things is justified. Mine, however, is too.

I never denied that either

Although I have to admit that I can't really believe you on that. That you sleep just as well whether you have to pay off 300k in debt or 100k or even 20k... How would you even know?! I mean, have you ever slept in your own home knowing that you no longer have to pay a loan? Maybe...

I find this paragraph a pity though, as it is also deliberately provocative. You can believe it or not, knowing that our interest rate is fixed until the end, everything was fine for me and I don’t waste a second on the financing or the amount of the remaining debt. It doesn’t matter to me whether it’s 100k or 300k, I don’t feel it, it doesn’t burden me, it plays no role in daily life. What matters is what I have to service, I can calculate that concretely, and I manage that very well. Done. I also don’t care about the unnecessarily arrogant touch in your last sentence. But again: there are also plenty of good arguments for renting; for me, the ones you mainly mentioned here count less...

Net income T€ 4 incl. child benefit (without Christmas bonus/vacation pay), if you include that it's T€ 4.4 p.a.

New construction financing T€ 350 = 1,300 monthly.
House additional costs = 250 monthly.
One car = 250 monthly.
Kindergarten 1 child = 200 monthly.
Living expenses = 1,400 monthly.
Insurance = 200 monthly.
Total: T€ 3.6
==> Savings/holidays/fun = 800 monthly.

That's great. Now I can "complain" a bit about the costs.

1) With 350k construction financing you're already not so far from the number I meant... (I did say that >300k "would not be wise").
2) The car with 250 is again such a thing... Already paid off? Gas for free? Repairs never necessary? Someone here in other threads pretty precisely listed that an average annual car somehow always costs around 500 EUR/month.
3) I assumed 2 children in my example. You one. (For that, your living expenses for 3 are higher than mine for 4. Ok.)
4) Insurance 200 is a bit too little for me. The house has to be insured. Then many have disability insurance and life insurance, legal protection, and a small supplementary health insurance (single room etc). And that for both. So I would add at least another 150.
5) Savings belong to fixed costs for me. Let's say 200.

So we end up at about +550. I calculated the car at 400 instead of 250)
So total 4,150. Fixed costs.
Holidays etc. are extra.

Is that possible? Sure!
Does it have to be that tight? In my opinion no. But that's where we differ...

House loan - 1500
2 cars - 1000
Daycare - 500
All insurance - 400
House reserves - 200
Food for 4 - 1000
Clothing all-in - 200
Private pension - 300
House utilities: 250

That’s just 5,350,-.

Now the family obviously has to bring home 5 net while one partner works part-time.

The calculation only works as long as the numbers used are correct. Obviously.

Two cars cost us about €400, not €1000.

Daycare €150 for both plus a little extra for food.

Insurance without car about €60. Car insurance is already included in the €400 above.

Food for four including drugstore about €600, no discounters.

And now?

It’s simply individual.

The amount of debt does not matter at all at first. Whether 300k or 500k... it's just a number. I sleep well, even though my numbers would massively worry half of the people. The reason I can sleep peacefully is that the house is located in a sought-after area, the purchase price was low, and I can very safely sell the house in case of emergency without financial ruin. That might not be the case with a new building. Another existing property that I once wanted to buy was so expensive that even 10 years in the future it would be unclear whether I would still get the purchase price. Apart from resale value, the amount really does not matter to me at all. The monthly payment fits, I only speculated moderately with the fixed term. Peaceful sleep. Quite the opposite of the restlessness caused by stock prices, as I will soon need the money from the stocks.

I never denied that either

Me neither

However, I find this paragraph unfortunate as well as intentionally provocative.

Provocative in the sense of "Hey, maybe reconsider your statement", yes.
Why that should be objectionable is beyond my knowledge.

You can believe it or not, knowing that our interest rate is fixed until the end was all good for me and I don’t waste a second on the financing or the amount of the remaining debt. It doesn’t matter to me whether it’s 100k or 300k, I don’t feel it, it doesn’t burden me, it plays no role in everyday life.
What matters is what I have to pay, I can calculate that concretely, and I’m fine with that. Done.

I can understand and believe that.
However, for some people there is more than just "I can manage it". Ultimate freedom probably doesn’t exist... But one always tries to get as close to it as possible. And in my opinion, choosing to live with, for example, 450k debt is not the best way.

I don’t care about the unnecessarily arrogant touch in your last sentence either

So it’s completely unthinkable for you that someone who once owned an almost fully paid-off house now decides to buy another, which he has to pay for 30+ years? (Divorce, death, wrong decisions, helping family members, etc. There are a thousand reasons why that can be so).
If yes, then that actually supports my argument.

I found nothing arrogant about my statement. But I understand how you might come to think that. However, it was definitely not meant that way.